Immunization is a strategy in which bond investors:
A) buy only high-quality bonds.
B) attempt to avoid default risk.
C) attempt to avoid call and convertible risk.
D) attempt to avoid reinvestment and price risk.

Question

Quizplus · Accepted Answer

Immunization is a strategy used by bond investors to minimize the impact of interest rate changes on the value of their bond portfolio, specifically targeting reinvestment and price risk.

Immunization Is a Strategy in Which Bond Investors